Bitwise Asset Management aims to enhance cryptocurrency investment options by submitting a proposal to the U.S. Securities and Exchange Commission (SEC) for an innovative exchange-traded fund (ETF). This proposed ETF, based on its existing 10 Crypto Index Fund, would incorporate ten major cryptocurrencies, offering investors indirect exposure to these digital assets.
ETF Structure and Composition
The ETF is designed to mirror the prices of its constituent cryptocurrencies in weighted proportions, allocating investments accordingly. The principal assets include Bitcoin, Ethereum, and Solana, which collectively form the bulk of the index. Bitcoin dominates with a 75.1% allocation, followed by Ethereum at 16.5% and Solana at 4.3%. The remaining seven cryptocurrencies—XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap—are allocated various smaller percentages, all contributing to a diversified portfolio.
Bitwise Innovations and Developments
Bitwise's ETF proposal marks another step in its strategic expansion within the cryptocurrency market. Earlier in November, the firm achieved a milestone, surpassing $10 billion in assets under management (AUM), with an impressive $1 billion growth in just ten days. Moreover, Bitwise is broadening its ETF offerings. It recently announced NYSE Arca's filing to list a combined Bitcoin and Ethereum ETP, structured by market capitalization. Simultaneously, Bitwise ambitiously rebranded its European XRP ETF to Bitwise Physical XRP ETP, supported by Ripple’s investment commitment.
Regulatory and Market Perspectives
The election of Donald Trump as U.S. president, coupled with the impending resignation of SEC Chair Gary Gensler, has stirred optimism in the crypto realm. Industry players are leveraging this sentiment to advance their crypto ETF agendas. Despite this promising environment, hurdles remain. Bloomberg analyst James Seyffart cautioned that substantial regulatory challenges could hamper the timeline for altcoin ETF approvals.
Bitwise's proposal highlights its continued expansion in the crypto market. As the industry anticipates regulatory changes, Bitwise is positioned to play a significant role in shaping the future of crypto investment.
